How Order Volume Changes Your Per-Unit Price

How order volume changes your per-unit price

Why does ordering more lower your unit price, and how do you find the right balance? Understanding the volume-price relationship helps you order smartly. Here is how it works for accessories.

Why bigger runs cost less per unit

Custom manufacturing carries fixed setup, development, materials minimums and decoration setup, that does not change much with quantity. Spreading that fixed cost across more units lowers the cost of each one. That is why a larger run has a lower per-unit price, and why small runs cost more per piece.

Where the price breaks sit

Per-unit price tends to drop at certain volume thresholds, where fixed costs are better absorbed or better material pricing kicks in. A manufacturer can show you where those breaks sit for your product, so you can see what a slightly larger order does to your unit cost.

Balancing volume against cash and risk

Ordering more lowers your unit cost but ties up more cash and carries more inventory risk. The right order size balances a healthy unit cost against what you can fund and sell. Do not over-order for a lower unit price you cannot afford to hold.

Find your sweet spot

The sweet spot is the volume where your unit cost works, your cash is comfortable and your risk is sensible. Engelite helps brands find that balance for their product and stage. Tell us your numbers and we will model the options with you.

 

Want to find your sweet spot? Let's run the numbers. Get in touch.

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